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CB vs. CINF: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Insurance - Property and Casualty sector have probably already heard of Chubb (CB - Free Report) and Cincinnati Financial (CINF - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Both Chubb and Cincinnati Financial have a Zacks Rank of # 2 (Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is only part of the picture for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
CB currently has a forward P/E ratio of 11.78, while CINF has a forward P/E of 18.51. We also note that CB has a PEG ratio of 1.18. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CINF currently has a PEG ratio of 1.22.
Another notable valuation metric for CB is its P/B ratio of 1.58. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, CINF has a P/B of 1.66.
These metrics, and several others, help CB earn a Value grade of B, while CINF has been given a Value grade of C.
Both CB and CINF are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that CB is the superior value option right now.
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CB vs. CINF: Which Stock Is the Better Value Option?
Investors interested in stocks from the Insurance - Property and Casualty sector have probably already heard of Chubb (CB - Free Report) and Cincinnati Financial (CINF - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Both Chubb and Cincinnati Financial have a Zacks Rank of # 2 (Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is only part of the picture for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
CB currently has a forward P/E ratio of 11.78, while CINF has a forward P/E of 18.51. We also note that CB has a PEG ratio of 1.18. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CINF currently has a PEG ratio of 1.22.
Another notable valuation metric for CB is its P/B ratio of 1.58. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, CINF has a P/B of 1.66.
These metrics, and several others, help CB earn a Value grade of B, while CINF has been given a Value grade of C.
Both CB and CINF are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that CB is the superior value option right now.